The electric vehicle (EV) market is at a critical juncture. Major automakers have aggressive plans to roll out new EVs over the next few years, yet consumer demand has not kept pace. Meanwhile, charging infrastructure lags behind and the federal government pushes for faster adoption.

Yet, the fossil fuel industry is still growing and is not projected to peak until the 2030s.

The path ahead for EVs faces plenty of bumps. But by understanding cognitive biases, and implementing smart leadership and strategic investments, the EV transition can accelerate.

COGNITIVE ROADBLOCKS

As we navigate the path toward a more sustainable automotive future, understanding the cognitive biases at play is critical. These subtle yet potent mental roadblocks could be slowing down the transition to EVs.

The status quo bias, for instance, reflects a predisposition towards maintaining the current state of affairs. This bias, when coupled with loss aversion—where a potential loss is perceived as more significant than a gain—can cause individuals to view the switch to EVs as unfavorable, despite their long-term benefits.

The status quo bias is an inherent preference for the current state of things, a comfort in the familiar, and a resistance to change. This mental inertia can make individuals more likely to stick with what they know, in this case, traditional gasoline vehicles.

The transition to electric vehicles represents a significant shift, one that comes with new behaviors, routines, and understanding. It’s not merely a change in vehicle type, but a leap into a new ecosystem of energy consumption and automotive interaction. This unfamiliar territory could trigger the status quo bias, making the adoption of EVs less appealing to the average consumer.

On the other side of the spectrum, loss aversion, a principle from behavioral economics, posits that people feel the sting of losses more acutely than the pleasure of gains. The potential perceived losses such as the convenience of quick refueling, the extensive range, or even the roar of an internal combustion engine may outweigh the numerous gains like lower maintenance costs, reduced emissions, and fuel savings associated with EVs. This disproportionate weighting of losses over gains can significantly dampen the enthusiasm towards making the switch to EVs.

CONSUMER EDUCATION

Misconceptions and knowledge gaps persist around owning and operating EVs, too.

Daniel Robinson, a writer for MarketWatch Guides, observes inadequate communication from automakers. “I don’t feel like I’ve seen a whole lot of that from the big automakers,” he says. “The real nuts and bolts of it has not been explained very well to consumers.”

Industry needs to clearly convey total cost of ownership advantages. EVs cost less to fuel and maintain over their lifespan compared to gas vehicles. Home charging solutions are simple; public charging keeps improving. Driving dynamics differ but adapt quickly.

Dealers should train sales staff to competently inform buyers. Marketing should emphasize practical benefits, not just slick styling. Hands-on education events can convert skeptics.

CHARGING INFRASTRUCTURE

Range anxiety haunts potential EV buyers. They worry about running out of juice on long drives far from charging stations. The infrastructure bill passed in 2021 dedicates billions to building out a national EV charging network. New federal permitting rules also aim to speed up construction. And seven automakers have plans to build a massive network to rival Tesla’s.

But we aren’t there yet. “The charging infrastructure might be lagging a bit as well,” Robinson says. Until drivers feel confident they can charge up conveniently, EV adoption will sputter. Government and industry need to work together to proliferate fast-charging stations near major highways and in urban centers.

Equally important is communicating the ease of home charging. Slow overnight charging eliminates most daily range anxiety.

MADE IN AMERICA TRADEOFFS

Much EV battery and vehicle innovation has come from China. Policymakers want to boost domestic manufacturing to compete. But Made in America requirements could backfire. “Automakers and the federal government, all are trying to find the right balance between moving too quickly and, and sort of falling behind a little bit,” Robinson cautions.

Tesla’s dominance so far shows the fruits of first-mover advantage. U.S. automakers play catch up. Protectionist industrial policies risk driving up costs that get passed to consumers.

Smart policy entails targeted subsidies to catalyze new domestic supply chains, not trade barriers. Streamlined regulations can also help American companies flourish through innovation, not insulation.

WORKFORCE TRAINING

EV mechanics are in short supply. These new vehicles require different diagnostic and repair expertise compared to traditional internal combustion engines. Without technicians competent in EVs, getting problems fixed could turn off drivers from adopting this new technology.

The skills gap exists on multiple levels. Individual mechanics at local dealerships and independent shops need training to work on EVs. Vocational schools and community colleges must offer certification programs to build up a workforce pipeline of qualified EV technicians. And automakers themselves need to invest in comprehensive technician training programs, not just rely on dealerships to handle it.

EVs contain far more software and electronics than old-fashioned engines. Diagnosing issues requires interfacing with complex computer systems. Replacing parts involves high-voltage batteries and electric motors rather than belts, hoses, and spark plugs. Even routine maintenance is different.

Dealerships in particular need to dedicate time and money to get their technicians trained on EVs. They can partner with manufacturers to offer on-site instruction and certification. Third-party programs are another option. But technicians can’t be expected to just figure things out on their own.

Without dealers building up expertise in their service bays, drivers will get frustrated trying to get their EVs fixed. Right now, many dealers steer buyers away from EVs due to unfamiliarity with the required maintenance. Comprehensive training to give mechanics the confidence and skills to work on EVs is essential to convert more dealers into supporters.

More model availability in different vehicle segments will broaden appeal. Plunging battery costs will enable lower prices. Charging infrastructure will expand. Knowledge gaps will close. “I think everything will come together,” Robinson predicts. “I’m more excited than I’ve ever been about it.